The first two batches of Colombian CBD have been exported to Europe as the South American country steps-up efforts to become a leading global player.
The Colombian government recently granted its first CBD isolate export permit to PharmaCielo and it has now shipped its first batch to the Swiss firm Creso Pharma. Meanwhile, Bogota-based Clever Leaves has successfully cleared U.K. customs with a batch of Colombian CBD destined for the booming British retail market.
Why Colombia Is A Key Cannabis Country
A favorable climate, cheap labor, low construction costs and a supportive Government is driving the Colombian cannabis industry. Cannabis has been decriminalized in the country for over 20 years and in 2016 it passed a law allowing for the cultivation, processing and export of medicinal cannabis.
But, Health Europa reports that in reality Colombia has only been able to successfully export a small quantity of dried flower to Canada for scientific research, to date. However these two European export deals show that the CBD export industry is ramping up in earnest.
Canada Comes To Colombia
PharmaCielo is based in Rionegro, Colombia, and listed on the Toronto Stock Exchange. It is one of the world’s largest licensed producer with a foot print the size of 260 football fields and a yearly flower capacity of 5,530,000 kilograms, it says.
It is currently in the process of buying Creso Pharma for over U.S $80 million; it is an Australian firm with operations in Switzerland and cultivation facilities in Canada, Colombia, and Israel.
Colombia’s ambition has attracted Canada’s three largest cannabis firms – Canopy Growth Corp, Aurora and Aphria – who have all acquired licensed producers in Colombia with many mid-tier international players following suit, reports Health Europa.
Latin America On The Up
The LATAM (Latin American) Cannabis Report published by Prohibition Partners says with over ten major markets on the continent have legalised medical cannabis – sales were worth $125 million in 2018, and are expected to rise to $12.7 billion by 2028.
Stephen Murphy, Managing Director at Prohibition Partners, said Colombia has become one of the world’s most ‘attractive cannabis markets as international cannabis companies take advantage of favourable export laws’.
He went on to say that the growth of cannabis in Latin American ‘will significantly impact the global cannabis industry, undercutting producers and pricing worldwide’.